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Oil maintains most of recent gains ahead of OPEC+ meeting

As OPEC+ producers appeared poised to agree on significant output target cuts later in the day amid a tight market, oil edged down on Wednesday after recent gains.

At 8:39 GMT, WTI crude decreased by 32 cents, or 0.4%, to $86.20 per barrel, while Brent crude down by 23 cents, or 0.3%, to $91.57 per barrel. The last two days saw an uptick in both contracts.

According to Fiona Cincotta, senior financial markets analyst at City Index, oil has increased so far this week in expectation of the largest output cut by OPEC+ since the height of the COVID-19 crisis in 2020.

As OPEC+ producers appeared poised to agree on significant output target cuts later in the day amid a tight market, oil edged down on Wednesday after recent gains.

An OPEC source told Reuters that the Organization of the Petroleum Exporting Countries (OPEC) and its allies, led by Russia, will meet in Vienna to discuss output cuts of up to 2 million barrels per day (bpd).

President Joe Biden is trying to prevent an increase in the price of gasoline in the United States, thus the US is pressuring OPEC+ countries to avoid making significant cuts, a source familiar with the situation told Reuters.

A lower output target would have little influence on supply because many OPEC+ nations pump below their limits. OPEC+ missed August's output goal by 3.58 million bpd.

According to market sources citing American Petroleum Institute data on Tuesday, U.S. crude oil stocks decreased by around 1.8 million barrels for the week ending September 30.

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